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THUNDER BAY, ON, April 3 /CNW/ - PREMIER GOLD MINES LTD (PG:TSX) is
pleased to provide an update on the progress of a proposed underground drill
program from the Red Lake Gold Mine, and the winter drill campaign on the
Rahill-Bonanza Project (RBP), a 50-50 joint venture with partner Goldcorp Inc.
Premier anticipates reporting assay results from the winter drilling
campaign in April. Diamond drills have now been pulled off of the Red Lake ice
owing to warm spring weather with the winter ice campaign being shorter (~ 6.5
weeks) than anticipated. In all, some 10,000 metres of drilling have been
completed to date in 2007 testing initial targets along strike from the known
deposits. The drill program will curtail for a few weeks to confirm the plan
and schedule for the spring and summer drilling season.
Underground Drilling From Campbell Complex
Premier previously reported that it anticipated underground drilling from
the Campbell Complex onto the JV property to begin in late March or early
April 2007. A recent update from Goldcorp Inc. confirms, "Underground
development is currently underway on the 41 Level at Goldcorp's adjacent Red
Lake Gold Mine. This program includes drifting further to the west towards the
joint venture property. Upon completion of this exploration drift, expected to
be in the next few weeks, exploration drilling will commence." (See Figure 1 -
Premier views this drill program as its premier "high priority" target
for 2007. Red Lake Gold Mines (RLGM) is the highest grade gold mine in the
world and is expected to produce 790,000 ounces of gold in 2007. At
December 31, 2006, Mineral Reserves and Resources for RLGM stood at 9.49
million ounces. Goldcorp's exploration spending in Red Lake (including the
RBP) is budgeted at US$26 million, representing almost 22% of 2007 exploration
budget for the entire corporation.
The goal of this program, is to attempt to demonstrate that the
favourable rock-types, alteration and structural setting that host the high
grade zones at RLGM also exist on the RBP. In the event that results warrant
underground development toward the JV ground, the RBP lies immediately along
strike from, and within 500 metres from existing RLGM infrastructure.
Meunier Claim Purchase
Premier also announces that it has come to terms with Mr. Dave Meunier
regarding purchase of his claim that was positioned in (and surrounded by) the
west central portion of the Rahill-Bonanza JV property. Purchase of this claim
by Premier, for the JV, further consolidates our strategic land position
within this prolific district. The claim is located in close proximity to
Goldcorp's Cochenour and Gold Eagle's (GEA:TSX) Bruce Channel projects.
Spring & Summer Drill Programs
Premier expects to conduct between 25,000 and 30,000 metres of drilling
during the remainder of 2007 on the RBP. In addition to furthering exploration
of targets previously identified, Premier will begin delineation drilling on
the Bonanza Deposit, discovered in 2004, in order to produce and report a
NI 43-101 compliant resource estimate prior to the end of the year. The press
release dated December 4th, 2006 anticipated the formal joint venture
agreement (JVA) with Goldcorp Inc. would be signed in late January 2007. It is
now anticipated the JVA will be signed during Q2 2007. No changes to the
original Letter of Intent have been made or proposed by either party.
Stephen McGibbon, P.Geo., Executive Vice-President and Chief Operating
Officer of Premier, is the qualified person for the information contained in
this press release and is a Qualified Person within the meaning of National
Premier Gold Mines Limited is a Canadian-based mineral exploration and
development company with diverse property holdings that include several
projects and deposits in Northwestern Ontario and a joint venture in Mexico.
In the Red Lake gold mining camp, two of these are operated in joint venture
with Goldcorp Inc. (TSX:G). A strategic project is also located on the main
Musselwhite Gold Mine trend (Goldcorp-Kinross).
The statements made in this Press Release may contain forward-looking
statements that may involve a number of risks and uncertainties. Actual events
or results could differ materially from the Company's expectations and
For further information:
For further information: Ewan Downie, President, Phone: (807) 346-1390,
Fax: (807) 345-0284, e-mail: firstname.lastname@example.org, Web Site: